In afternoon trade the S&P/ASX 200 index is on course to end its winning streak with a disappointing decline. At the time of writing the benchmark index is down 0.7% to 6,697.5 points.
Four shares that have fallen more than most today are listed below. Here's why they have dropped lower:
The Altium Limited (ASX: ALU) share price is down 4.5% to $31.20 despite there being no news out of the design software company. Interestingly, this morning the company reported some insider buying. According to the release, Samuel Weiss picked up 1,000 shares through an on-market trade. Mr Weiss paid an average of US$23.34 per share, including brokerage.
The Bega Cheese Ltd (ASX: BGA) share price is down a further 5.5% to $3.73. This food company's shares have come under pressure this week after providing its guidance for FY 2020. Due largely to unprecedented competitive milk supply conditions, Bega Cheese expects its earnings to decline this year. It has provided normalised EBITDA guidance in the range of $95 million to $105 million for FY 2020. Which will be a decline of 8.7% to 17.5% year on year. This has left some in the market concerned that it may breach its debt covenants.
The Costa Group Holdings Ltd (ASX: CGC) share price has returned from its trading halt and is down 23% to $2.67. Investors have been selling the horticulture company's shares following yet another guidance downgrade. Costa's calendar year guidance is now for an adjusted net profit of $28 million, compared to $57 million to $66 million. In addition to this, this morning the company completed its institutional entitlement offer. It raised $87 million at $2.20 per share and will now seek to raise a further $90 million from retail investors.
The Zip Co Ltd (ASX: Z1P) share price has sunk 10% lower to $4.05 following its first quarter update. According to the release, the payments company achieved record quarterly revenue of $31 million. This was a 107% increase on the prior corresponding period and a 15% lift on the previous quarter. However, a reduction in its cash EBTDA as a percentage of average receivables appears to have caught the eye of investors. This fell from 2.2% in the fourth quarter of FY 2019 to just 1% in the first quarter.
